The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-07-18
The American Water Works Co

The undersigned offer for sale and recommend
for investment, mt 103 and interest, subject
90 advance without notice, the above des-
eribed 81 100000 bonds of the American Water
Works Company, secured by mortgage upon the
franchise and pro perty Of the Water Works at
Omaha, Nebraska
These bonds are part of an authorized loan Of
$4ooo,o0o, of which s40o, 900 are placed in trust
with The Farmers Loan and Trust Company New
YORK. for the purpose Of retiring an equal amount
OF old bonds now outstanding as soon as they can
be redeemed, and the remaining $4,000, 900 are
deposited in trust with the sameCompany to be Is
sued after January LIST, 1888, as may be requir-
ed to defray the actual cash cost OF extensions Of
water mains and other additions to the plant
For the present, however, the entire indebtedness
Of the Company will be only $4,000, 900, upon
which the annual interest charge viii amount to
$4,000.
The gross income of the Company for the en-
suing year on the basis Of present applications
and contracts will exceed 100000, and if the
average rate OF Increase for the past three years
Is continued the basis of earnings on July LIST,
1888, will not be less than s25o,O00 per annum
but there is every indication that the percentage
OF Increase this year will be larger than ever be-
fore, the Company having added 6O4 new con-
1887, as compared with $50 for the year 1886.
The operating expenses for the ensuing year
will approximate S45 900, and after paying inter-
est and all other charges there will be a surplus
of more than $4,000, exclusive of any increase
in earnings beyond existing contracts.
By express provision of the mortgage no part Of
the 100000 bonds in trust can be issued I'M
less the net income Is more than sufficient to pay
the interest thereon In addition to bonds preyl-
ously issued, and then only to pay actual cost Of
extension, not exceeding 100000 In any one
month.
The present population Of Omaha is not less
than 100000, an increase Of 10000 since 1880,
when the works were constructed, and this re-
markable growth has not only required the Com
pany 10 make large extensions every year, but
viii necessitate the removal Of tie pumping sta
tion TO place some FIVE miles distant from the
present location, where a sufficient area for more
settling basins can be obtained.
Next to those at Kansas City the Water Works
at Omaha are the most extensive under private
management I'm the United States. The import
ance OF Omaha as commercial centre is shown
by the heavy bank exchanges at the Clearing
House, the same being in excess Of those Of Cleye
land, Indianapolis, Columbus or Denver, and
nearly equal TO Detroit aud Minneapolis, and
cept Boston and Providence, and greater than the
combinedclearings of the banks at Portland, Me-,
Worcester and Springfield, Massachusetts.
The bonds are now being engraved to meet the
requirements of the New York Stock Exchange,
and as soon as practicable, application will be
made to admit them to dealings at that exchange,
aud when placed upon the list they will not only
have ready market but will doubtless steadily
advance in value.
Pending the delivery Of engraved bonds on or
before September 1st 1887, certificates in de
nomination of $4,000 each will be issued by The
Farmers Loan and Trust Company of New York,
which will have the same force and security as
the bonds, and for smaller amounts the under
signed viii give temporary receipts.
We commend these bonds as a conservative in
vestment for trust funds. Copies of the mortgage
and other papers may be seen at our respective
Offices.